A new row has blown up between Labour-controlled Ipswich council and the Tory-run county, this time over the use of money raised by on-street parking meters.

So far this year £126,000 has been raised from people using parking meters in Ipswich, and the borough has applied for £135,000 from the county – the fund has built up over several years and currently has more than £2 million waiting to be allocated

However none of the bids have been successful.

Labour transport spokeswoman Sandra Gage said: “On Friday, when it was revealed that the borough’s request for town signs had been rejected, Graham Newman insisted that he rejected claims that the county treats Ipswich with contempt.

“Well it seems to me, with Ipswich now subsidising the rest of the county’s transport schemes, without getting its fair share of the pot, that is exactly what he is doing. I will be challenging this proposal at Cabinet on the 1 July.”

However, Mr Newman rejected claims that Ipswich was losing out, saying that the county was continuing to invest in the town’s transport network.

He said: “We are currently carrying out the £21m Travel scheme in Ipswich, which includes a contribution of £3m from county council funds.

“As part of this, we are working with the borough council and Ipswich Central to revamp Queen Street so that it can form part of the Cornhill improvement proposals.

“For the past two years, Suffolk County Council has supported the ‘Quids In’ Christmas shopping campaign – with £1 on-street parking and £1 park and ride fares.

“It is quite fair that we support similar initiatives in Bury St Edmunds from the on-street parking fund.”

The county had also recently won nearly £6m from the Government’s pothole challenge fund.

“No other town in the county has benefited from this type of support and financial commitment, proving that these accusations from Labour are totally without foundation.”